Lecture 3 Project Management.ppt

Chapter 4 Defining the Project

Learning Objectives  Identify key elements of a project scope statement  Understand why it is important to establish project priorities in terms of cost, time, and performance  Demonstrate the importance of a work breakdown structure (WBS)  Create responsibility matrices for small projects  Create a communication plan for a project

Defining the Project •Step 1:Defining the Project Scope •Step 2:Establishing Project Priorities •Step 3:Creating the Work Breakdown Structure •Step 4:Integrating the WBS with the Organization •Step 5:Coding the WBS for the Information System

Step 1: Defining the Project Scope •Project Scope • A definition of the end result or mission of the project—a product or service for the client/customer—in specific, tangible, and measurable terms. •Purpose of the Scope Statement • To clearly define the deliverable(s) for the end user. • To focus the project on successful completion of its goals. • To be used by the project owner and participants as a planning tool and for measuring project success.

Project Scope Checklist 5 1. Project objective 2. Product scope description 3. Justification 4. Deliverables 5. Milestones 6. Technical requirements 7. Limits and exclusions 8. Acceptance criteria (Reviews with customer)

6 1. Project objective: the first step of project scope definition is to define the overall objective to meet the customer's needs. The project objective answers the questions of what, when, how much and at times where. 2. Product scope description: detailed description of the characteristics of the product, service. for example, if the product is cell phone, its product scope will be a screen size, battery, processor, camera type and so on. 3. Justification: It is easily includes cost or benefit analysis and strategic significance on a new release project that the justification maybe and expected ROI of 30%.

7 1. Project objective: the first step of project scope definition is to define the overall objective to meet the customer's needs. The project objective answers the questions of what, when, how much and at times where. 2. Product scope description: detailed description of the characteristics of the product, service. for example, if the product is cell phone, its product scope will be a screen size, battery, processor, camera type and so on. 3. Justification: It is easily includes cost or benefit analysis and strategic significance on a new release project that the justification maybe and expected ROI of 30%.

8 4. Deliverables : it is the expected measurable output over the life of the project. For example, deliverables in the early design phase of the project might be a list of specification. In the second phase Deliverable might be software coding and Technical manual. The next phase might be prototype. The final phase might be final test and approve software. 5. Milestones: it represents first rocket is the mails of time cost and resources of the project. for example, testing complete and finished by July 1, 2023. 6. Technical requirements: It typically clarifies the performance specifications. For example, in information systems projects include the speed and capacity of database systems and connectivity with alternative systems .

9 7. Limits and exclusions: the limits of scope should be defined. Failure to do so can lead to false Expectations and to expanding resources and time on the wrong problem. for example, a house will be built but no landscaping or security devices added. 8. Acceptance criteria (Reviews with customer) : acceptance criteria are a set of conditions that must be met before the deliverables are accepted. for example, all tasks and milestones are completed.

Project Scope: Terms and Definitions 11 •Scope Statements • Also called statements of work (SOW) • detailed milestone schedule or risk analysis report . •Project Charter • Can contain an expanded version of scope statement • A document authorizing the project manager to initiate and lead the project. •Project Creep • The tendency for the project scope to expand over time due to changing requirements, specifications, and priorities.

Step 2: Establishing Project Priorities •Causes of Project Trade-offs • Shifts in the relative importance of criterions related to cost, time, and performance parameters (Budget–Cost) (Schedule–Time) (Performance–Scope) •Managing the Priorities of Project Trade-offs • one technique that is useful to complete a parity matrix for the project which criterion is constrained, which should be enhanced and which can be accepted. • Constrain: a parameter is a fixed requirement. • Enhance: optimizing a parameter over others. • Accept: reducing (or not meeting) a parameter requirement.

Step 3: Creating the Work Breakdown Structure •Work Breakdown Structure (WBS) • An hierarchical outline (map) that identifies the products and work elements involved in a project. • Defines the relationship of the final deliverable (the project) to its sub deliverables, and in turn, their relationships to work packages.

Hierarchical Breakdown of the WBS

How WBS Helps the Project Manager •WBS • Facilitates evaluation of cost, time, and technical performance of the organization on a project. • Provides management with information appropriate to each organizational level. • Helps in the development of the organization breakdown structure (OBS) which assigns project responsibilities to organizational units and individuals • Helps manage plan, schedule, and budget. • Defines communication channels and assists in coordinating the various project elements.

Work Packages •A work package is the lowest level of the WBS. • It is output-oriented in that it: • Defines work (what). • Identifies time to complete a work package (how long) • Identifies a time-phased budget to complete a work package (cost) • Identifies resources needed to complete a work package (how much) • Identifies a single person responsible for units of work (who) • Identifies monitoring points (milestones) for measuring Progress (how well).

Step 4: Integrating the WBS with the Organization •Organizational Breakdown Structure (OBS) • Depicts how the firm is organized to discharge its work responsibility for a project. • Provides a framework to summarize organization work unit performance. • Identifies organization units responsible for work packages. • Tie the organizational unit to cost control accounts.

Project Roll-up •Cost Account (project control point) • The intersection of the WBS and the OBS that is a budgetary control point for work packages. • Used to provide a roll-up (summation) of costs incurred over time by a work package across organization units and levels, and by deliverables.

Step 5: Coding the WBS for the Information system • The maximum usefulness of a WBS depends on a coding system. • The codes are used to define levels and elements in the WBS, organisation elements, work packages, budget and cost information. • On larger projects, the WBS is further supported with WBS dictionary that provides the work package level (code), name, functional description which helps to avoid scope creep. 23

Responsibility Matrices •Responsibility Matrix (RM) • Also called a linear responsibility chart. • Summarizes the tasks to be accomplished and who is responsible for what on the project. • Lists project activities and participants. • Clarifies critical interfaces between units and individuals that need coordination. • Provide a means for all participants to view their responsibilities and agree on their assignments. • Clarifies the extent or type of authority that can be exercised by each participant.

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Lecture 3 Project Management.ppt

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